4.2. ERMUSR 11-16-2010Elk River ^-,
Municipal Utilities
~ 3069 Orono Parkway • P.O. Box 430 Phone: 763.441.2020
Elk River, MN 55330-0430 Fax: 763.441.8099
UTILITTES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Troy Adams, P.E. - Director of Operations
John Dietz, Chair
Jerry Gumphrey, Vice Chair
Da I Thom son, Trustee
MEETING DATE: AGENDA ITEM NUMBER:
November 16, 2010 4.2
SUBJECT:
Power Su ly Options /Resource Plannin Update
BACKGROUND:
In September 2008, Connexus Energy terminated the 10-year rolling "all requirements" power contract
with Elk River Municipal Utilities. In April 2010, the Utilities Commission authorized entering into
"Phase 1" of a resource planning study with a coalition which includes Central Minnesota Municipal
Power Agency (CMMPA) as a participant. In September 2010, the Utilities Commission authorized
entering into "Phase 2" of a resource planning study which includes the release of a Request For Proposal
(RFP).
DISCUSSION:
On September 28, Nashwauk announced that they would not be participating in Phase 2 of the resource
planning study. A reallocation of costs was done and the approval cost for Elk River Municipal Utilities
increases from $19,444.44 to $25,000.00. The costs for Elk River Municipal Utilities that would be
approved at a future date for the Phase 2b increase from $8,334.00 to $10,714.00. Elk River Municipal
Utilities' staff had informed the Resource Planning Coalition that they will participate in Phase 2 at the
$25,000 contingent upon all other remaining participants also agrees to participate in Phase 2. On
October 12`h, Willmar announced that they too would not be participating in Phase 2. At that time,
ERMU and the remaining resource planning participants tabled all resource planning coalition activities
to allow for Willmar to reconsider their withdrawal from the coalition. Willmar Utilities Commission
chose to open the topic for reconsideration at their November 8th commission meeting and decided to
rejoin the coalition and participate in Phase 2 of the resource planning study. With Willmar back on
board, the RFP is being prepared for release. The results of the RFP will be received and analysis for
presentation to the participants in spring 2011.
ACTION REQUESTED:
No action required at this time.